Question
Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per
Preparing a Budgeted Income Statement
Oliver Company provided the following information for the coming year:
Units produced and sold | 160,000 |
Cost of goods sold per unit | $6.30 |
Selling price | $14 |
Variable selling and administrative expenses per unit | $1.10 |
Fixed selling and administrative expenses | $423,000 |
Tax rate | 28 % |
Required:
Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar.
Cost of goods soldFixed selling and administrative expensesGross marginOperating incomeSalesSales | $ |
Cost of goods soldFixed selling and administrative expensesGross marginOperating incomeVariable selling and administrative expensesCost of goods sold | |
Fixed selling and administrative expensesGross marginIncome taxesOperating incomeSalesGross margin | $ |
Less: Cost of goods soldLess: Gross marginLess: Income taxesLess: Operating incomeLess: Variable selling and administrative expensesLess: Variable selling and administrative expenses | |
Less: Cost of goods soldLess: Fixed selling and administrative expensesLess: Income taxesLess: Operating incomeLess: SalesLess: Fixed selling and administrative expenses | |
Gross marginOperating incomeOperating lossNet incomeSalesOperating income | $ |
Less: Cost of goods soldLess: Fixed selling and administrative expensesLess: Gross marginLess: Income taxesLess: Variable selling and administrative expensesLess: Income taxes | |
Gross marginOperating incomeOperating lossNet incomeNet lossNet income | $ |
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